HomeMy WebLinkAboutAGENDA REPORT 2004 0303 CC REG ITEM 10FITEM 10 • IF.
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MOORPARK CITY COUNCIL
AGENDA REPORT
TO: Honorable City Council
FROM: Cynthia L. Borchard, Administrative Services Director Ofik
DATE: February 19, 2004 (CC Meeting of 3/03/04)
SUBJECT: Consider Adoption of Resolution Approving a 401 (a)
Money Purchase Plan and Trust with the ICMA Retirement
Corporation for Designated Positions
BACKGROUND
In 1992, the City Council approved the establishment of a 457
deferred compensation program for City employees with Great
Western Bank (now National Deferred). A second 457 deferred
compensation plan, International City /County Management
Association Retirement Corporation (ICMA -RC), was approved by
City Council in 1998. Staff is proposing that City Council
approve the establishment of a 401 (a) Money Purchase Plan with
ICMA -RC for the deferral of additional income for specified
employee groups.
DISCUSSION
Currently the City offers two (2) deferred compensation 457
plans for employees - National Deferred and ICMA Retirement
Corporation. The City contributes 7.5% (in lieu of social
security or PERS) to National Deferred for temporary part -time
employees.
The City contributes a percentage of gross base salary for the
following employee groups: City Manager (3 %); Department Heads
(2.5 %) ; Management & Competitive Service Employees and Regular
Part -Time Employees (2 %).
In addition to the City contribution, employees can also
contribute up to $13,000 for calendar year 2004 into a 457 Plan.
000O88
Honorable City Council
March 3, 2004
Page 2
With the implementation of a 401 (a) Plan, employees can defer
up to $41,000 in addition to the 457 Plan limits.
The 401 (a) Plan requires a mandatory employer contribution
amount or percentage which needs to be the same for each
employee group. It is proposed that 2.5% of the City's current
percentage contribution into the 457 plan for the City Manager,
Assistant City Manager and Department Heads be the mandatory
contribution for the 401 (a) Plan. This would then allow the
employee to contribute more tax deferred income into their 457
Plan. Employees can voluntarily contribute additional funds
into the 401 (a) Plan, after -tax and subject to the Plan
limitations up to the maximum allowed.
The 401 (a) Plan offers the same investment options as with the
457 Plan with the primary difference being that employees can
withdraw their contribution from their 457 Plan upon termination
of employment without penalty where with the 401 (a) Plan
employees will incur a 10% premature withdrawal penalty unless
they withdraw funds over ten (10) years if over age 55 or unless
they are age 59 %. There are no risks or costs to the City other
than the minimal administration costs for payroll withholding
and remittance to ICMA.
At this time, the 401 (a) Plan is proposed for the City Manager,
Assistant City Manager and Department Heads only. The effective
date of the Plan is January 1, 2004, however, employee
contributions will begin upon enrollment following the written
receipt of the Notice of Plan Acceptance from ICMA Retirement
Corporation.
Staff met with management employees, however, there was no
consensus to participate. Staff also met with union
representatives to brief them on the Plan. Any changes would be
subject to meet and confer and if implemented would take effect
on or after 7/1/04.
STAFF RECOMMENDATION
Adopt Resolution No. 2004- approving a 401 (a) Money
Purchase Plan and Trust with the ICMA Retirement Corporation for
participation by the City Manager, Assistant City Manager and
Department Heads and authorize the City Manager to sign the
Administrative Services Agreement with ICMA -RC.
Attachments: Resolution No. 2004- with Attachments
Administrative Services Agreement
00 ;00P9
RESOLUTION NO. 2004-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MOORPARK, CALIFORNIA, AUTHORIZING THE ESTABLISHMENT OF
A 401 (a) MONEY PURCHASE PLAN WITH THE ICMA RETIREMENT
CORPORATION
WHEREAS, the City of Moorpark ( "CITY ") has employees
rendering valuable services; and
WHEREAS, the establishment of a money purchase retirement
plan benefits such employees by providing funds for retirement
and funds for their beneficiaries in the event of death; and
WHEREAS, the City desires that its money purchase
retirement plan be administered by the ICMA Retirement
Corporation and that the funds held under such plan be invested
in the ICMA Retirement Trust, a trust established by public
employers for the collective investment of funds held under
their retirement and deferred compensation plans.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK
DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. That the City Council does hereby authorize
the establishment of a money purchase retirement plan (the
"Plan ") in the form of the ICMA Retirement Corporation
Governmental Money Purchase Plan & Trust, pursuant to the
specific provisions of the Adoption Agreement (executed copy
attached hereto).
SECTION 2. That the Plan shall be maintained for the
exclusive benefit of eligible employees and their beneficiaries.
SECTION 3. That the City hereby executes the
Declaration of Trust of the ICMA Retirement Trust, attached
hereto, intending this execution to be operative with respect to
any retirement or deferred compensation plan subsequently
established by the City, if the assets of the plan are to be
invested in the ICMA Retirement Trust.
SECTION 4. That the City hereby agrees to serve as
trustee under the Plan and to invest funds held under the Plan
in the ICMA Retirement Trust; and
Resolution No. 2004 -
Page 2
SECTION 5. That the City Manager is hereby authorized
to designate the City staff member to act as coordinator for the
Plan and to receive reports, notices, etc., from the ICMA
Retirement Corporation or the ICMA Retirement Trust; and the
City Manager or his /her designee shall cast, on behalf of the
City, any required votes under the ICMA Retirement Trust; and
the City Manager or his /her designee is authorized to execute
all necessary agreements with the ICMA Retirement Corporation
incidental to the administration of the Plan. Administrative
duties to carry out the Plan may be assigned to the appropriate
City staff member.
SECTION 6. The City Clerk shall certify to the adoption
of this resolution and shall cause a certified resolution to be
filed in the book of original Resolutions.
PASSED AND ADOPTED this 3rd day of March, 2004.
Patrick Hunter, Mayor
ATTEST:
Deborah S. Traffenstedt, City Clerk
Attachments:
1. ICMA Retirement Corporation Governmental Money
Purchase Plan & Trust Adoption Agreement
2. Declaration of Trust
000091L
ICMA RETIREMENT CORPORATION
GOVERNMENTAL MONEY PURCHASE PLAN & TRUST
ADOPTION AGREEMENT
Account Number 10- 8573
The Employer hereby establishes a Money Purchase Plan and Trust to be known as (the "Plan ") in the
form of the ICMA Retirement Corporation Governmental Money Purchase Plan andTrust.The Plan
shall be known as:
f Moorpark 401 (a) Plan
This Plan is an amendment and restatement of an existing defined contribution money purchase plan.
❑ Yes �D No
If yes, please specify the name of the defined contribution money purchase plan which this Plan .
hereby amends and restates:
I. Employer Name:
City of Moorpark
II. The Effective Date of the Plan shall be the first day of the Plan Year during which the
F.mplover adopts the Plan, unless an alternate Effective Date is hereby specified:
January 1, 2004
IV
V
Plan Year will mean:
11 The twelve (12) consecutive month period which coincides with the limita-
tion year. (See Section 5.04(1) of the Plan.)
❑ The twelve (12) consecutive month period commencing on
and each anniversary thereafter.
Normal Retirement Age (not to exceed age 65) shall be age 55
ELIGIBILITY REQUIREMENTS:
1. The following group(s) of Employees are eligible to participate in the Plan:
NIPP Adoption Agrcemmt 4i30112000
All Employees
All Full -Time Employees
Salaried Employees
Non -union Employees
Management Employees
Public Safety Employees
General Erriplovees
X Other (specify below):
City Manager
Assistant City Manager
Department Heads
I �iti6]
190 2]
[8031
[803;
12881
000309 r
The group specified must correspond to a group of the same designation that is defined
in the statutes, ordinances, rules, regulations, personnel rnanuals or other material in
eff ct in the state or locality of the Emplo1
2. The Employer hereby ,wives or reduces the requirement of a tNyelve (12) month Period
of Service for participation. The required Period of Service shall be —0—
write N/A if an Employee is eligible to participate upon employment). 3441
If this waiver or reduction is elected, it shall apply to all Employees within the Covered
Employment Classification.
3. A minimum age requirement is hereby specified for eligibility to participate. The
rninimuln age requirement is N/A (not to exceed age 2'1). Write N/A if no mini-
1341]
n1U111 age is declared.
VI. CONTRIBUTION PROVISIONS
1_ The Employer shall contribute as follows (choose one):
!:Ll Fixed Employer Contributions With Or Without Mandatory
Participant Contributions.
The Employer shall contribute on bellalf' of each Participant 2 • 5 % of
earnings or S NZA for the P1anYear (subject to the limitations
of'ArticleV of the Plan). Each Participant is required to contribute
% of earnings or S N.1 A for the Plan Year as a condition
of participation in the Plan. (Write "()" if no contribution is required.)
If Participant Contributions are required under this option, a Participant
shall not have the right to discontinue or vary the rate of such contribu-
tions after becoming a Plan Participant.
The Employer hereby elects to "pick up" the Mandatory /Required
Participant Contribution.
11 Yes ❑ No 16211
The pick -up provision specifies that the contribution is treated, for
federal income tax purposes, as though it is made by the employer. The
pick -up provision allows the employee to defer taxes on the employee
mandatory contribution. The actual result is the same as if the contribu-
tion were a reduction in that employee's salary by the amount of the
contribution. Picked up contributions are NOT' exempt from Social
Security to x
(Note to Employer: A determination letter issued to an adopting Em-
ployer is not a ruling by the Internal Revenue Service that Participant
contributions that are picked up by the Employer are riot includable in
the Participant's gross income for federal income tax purposes. The
Employer may seek such a ruling.
MP}' Adoption Agreement 4/30/2000
000HR093
[Picked up contributions are excludable from the Participant's gross
income under section 414(h)(2) of the Internal Revenue Code of 1986
only if they meet the requirements of Rev. Rul. 81 -351 1981 -1 C.B. 2».
Those requirements are (1) that the F.niployer inust specify- that the
contributions, although designated as employee contributions. are being
paid by the Employer in lieu of contributions by the en-iplovee, and (2)
the employee must not have the option of receiving the contributed
amounts directly instead of having them paid by the h.mployer to the
plan.)
1J Fixed Employer Match of Participant Contributions.
The Employer shall contribute on behalf of each Participant 0,4) of
Earnings for the Plan Year (subject to the limitations of Article V of the
Plan) for each Plan Year that such Participant has contributed %
of Earnings or 3 . Under this option, there is a single, fixed rate
of Employer contributions, but a Participant may decline to make the
required Participant contributions in any P1anYear, in which case no
Employer contribution will be made on the Participant's behalf in that
Plan Year.
J Variable Employer Match Of Participant Contributions.
The Employer shall contribute on behalf of each Participant an annount
determined as follows (subject to the limitations of Article V of the
Plan):
of the contributions made by the Participant for the Plan
Year (not including Participant contributions exceeding `;4I of
Earnings or
PLUS % of the contributions made by the Participant for the
Plan Year in excess of those included in the above paragraph (but not
including Participant contributions exceeding in the aggregate `u
of Earnings or 3 ).
Employer Contributions on behalf of a Participant for a P1anYear shall
not exceed or % of Earnings, whichever is
more or less.
2 Each Participant may make a voluntary (unmatched), after -tax contribution, subject to
the limitations of Section 4.0.5 and Article V of the Plan.
ID Yes ❑ No
NIN) Adepdon Agreement 4/30/ 2000 000094
VII
VIII
3. Employer contributions and Participant contributions shall be contributed to the _j rust
in accordance with the following payment schedule: (please circle one choice)
CO Bi- Weekly 1 Weekly 2 Semi - Weekly
3 Iii - Monthlv 4 Monthly 5 Semi - monthly
6 Iii- Quarterly ? Quarterly S Semi - Quarterly
9 131- Annually 10 Annually 11 Semi - Annually
EARNINGS
Earnings, as defined under Section 2.09 of the Plan, shall include:
(a)
Overtime
•
Yes
No
(b)
Bonuses
Yes
!J
No
LIMITATION ON ALLOCATIONS
If the Employer maintains or ever maintained another qualified plan in which any Participant in
this Plan is (or was) a participant or could possibly become a participant, tie Employer hereby
agrees to limit contributions to all such plans as provided herein, if recessary in order to avoid
excess contributions (as described in Sections 5.02 and 5.03 of the Plan).
If the Participant is covered under another qualified defined contribution plan main-
tained by the Employer, the provisions of Section 5.02(x) through (f) of the PLin %will
apply unless another method has been indicated below.
❑ Other Method. (Provide the method under which the plans will limit
total Annual Additions to the Maximum Permissible Amount. and \rill
properly reduce any excess amounts, in a manner that precludes Em-
ployer discretion.)
2. If the Participant is or has ever been a participant in a defined benefit plan maintained
by the Employer, and if the .limitation in Section 5.03 of. -the Plan would be exceeded,
then the Participant's Projected Annual Benefit under the defined benefit plan shall be
reduced in accordance with the terms thereof to the extent necessary to satisfy such
limitation. If such plan does not provide for such reduction, or if the limication is still
exceeded after the reduction, annuli additions shall be reduced to the extent necessary
in the manner described in Sections 5.02 and 5.02. The methods of avoiding the limita-
tion described in this paragraph will not apply if the Employer indicates another method
below.
0100095
'I-:
V1P11 Aciopuo.: A rcrmri!; 4 /3U /2Y,,i)
IX.
X
XI
U Other Method. (Note to Employer: Provide below language which
will satisR- the 1.0 limitation of section 415(e) of the Code. Such
language must preclude Employer discretion. See section 1.415 -1 of
the Regulations for guidance.)
3. The limitation year is the following 12- consecutive month period:
VESTING PROVISIONS
The Employer hereby specifies the follo%.ving vesting schedule, subject to (1) the minimum
vesting requirements as noted and (2) the concurrence of the flan Administrator.
Years of
Service
Percent
Completed
Vestin.g
100% Vested
Zero
%
One
-Iwo
Three
F0LIr
FiNIT
�c
Six
°q
Seven
%
Eight
%,
Nine
%
Ten
Wo
of
at timef\plan entry
Loans are permitted under the Plan, as provided in Article XIII:
..J Yes
Yj No
The Employer hereby attests that it is a unit of state or local government or an agency or
instrumentality of one or more units of state or local government.
XI1. The Plan Administrator hereby agrees to inform the Employer of any arilendments to the
Plan made pursuant to Section 14.05 of the Plan or of the discontinuance or abandonment
of the Plan.
151/
XIII. The Employer hereby appoints the ICMA Retirement Corporation as the Plan AdIllinistra-
tor pursuant to the terms and conditions of the ICMA RETIREMENT CORPORA-
TION GOVERNMENTAL MONEY PURCHASE PLAN &TRUST.
The Employer hereby agrees to the provisions of the Plan arid Trust.
0000 96
MIT Adoption Agreeintm. 4130/2W
XIv. The Employer hereby acknowledges it understands that failure to properly fill out this Adoption
Agreement may result in disqualification of the Plan.
Xv. An adopting Employer may not rely on a determination letter issued by the National or District Office
of the Internal Revenue Service as evidence that the Plan is qualified corder Section 401 of the Inter -
rial Revenue Code. In order to obtain reliance with respect to plan qualification, the Employer must
apply to the appropriate key district office for a determination letter.
In Witness Whereof, the Employer hereby causes this Agreement to be executed on this day of
,200 - --
EMPLOYER
Bv:
Steven Kueny
Title: City Manaetr
Attest:
ACCEPTED: ICMA RETIREMENT CORPORATION
�r i
"Dille: Corporate Secretary
Attest:
000097
6 NIP1' Acopdo❑ Agreeinent 4i3()/200(i
DECLARATION OF TRUST
This Declaration of-frust (the "Group Trust Agreement ") is made as of the 19th day of May. 2001, by VantageTrust
Company, which declares itself to be the sole Trustee of the trust hereby created.
WHEREAS, the ICMA Retirement Trust was created as a vehicle for the commingling of the assets of governmental
plans and governmental units described in Section 818(a)(6) of the Internal Revenue Code of 1986, as amended,
pursuant to a Declaration of Trust dated October 4, 1982, as subsequently amended, a copy of which is attached
hereto and incorporated by reference as set out below (the "IC,1vVk Declaration "); and
WHEREAS, the trust created hereunder (the "Group Trust ") is intended to meet the requiremerus of Revenue Ruling
81 -100, 198 1 -1 C.B. 326, and is established as a common trust fund within the meaning of Section 391:1 of T -ide 35
of the New Hampshire Revised Statutes Annotated, to accept aril hold for investment purposes the assets of the
Deferred Compensation and Qualified Plans held by and through the ICMA Retirement Trust.
NOW, THEREFORE, the Group Trust is created by the execution of this Declaration of Trust by the Trustee and is
established with respect to each Deferred Compensation and Qualified Plan by the transfer to the Trustee of such
Plan's assets in the ICMA Retirement Trust, by the Trustees thereof, in accord with the following provisions:
Incorporation of ICMA Declaration by Reference; ICMA By -Laws. Except as otherwise provided in
this Group Trust Agreement, and to the extent not inconsistent herewith, all provisions of the ICMMA
Declaration are incorporated herein by reference and made a part hereof, to be read by substituting the
Group Trust for the Retirement Trust and the Trustee for the Board of Trustees referenced therein. In this
respect, unless the context clearly indicates otherwise, all capitalized terms used herein and defined in the
ICMA Declaration have the meanings assigned to them in the ICMA Declaration. In addition, the By-
Laws of the ICllA Retirement Trust, as the same may be amended from rime -to -time, arc adopted as ti::
By -Laws of the Group Trust to the extent not inconsistent with the terms of this Group "Bust Agreement.
Notwithstanding the foregoing, the terms of the ICMA Declaration and By -Laws are further modified
with respect to the Group Trust created hereunder, as follows:
(a) any reporting, distribution, or other obligation of the Group Trust vis -a -vis any Deferred
Compensation Plan, Qualified Plan, Public Employer, Public Employer Trustee, or Employer
Trust shall be deemed satisfied to the extent that such obligation is undertaken by the ICMA
Retirement Trust (in which case the obligation of the Group Trust shall run to the ICMA
Retirement Trust); and
(b) all provisions dealing with the number, qualification, election, term and nomination of
Trustees shall not apply, and all other provisions relating to trustees (including, but not
limited to, resignation and removal) shall be interpreted in a manner consistent with the
appointment of a single corporate trustee.
2. Compliance with Revenue Procedure 81 -100. The requirements of Revenue Procedure 81 -100 are
applicable to the Group Trust as follows:
(a) Pursuant to the terms of this Group Trust Agreement anti Articic X of the By -Laws, invest-
ment in the Group Trust is limited to assets of Deferred Compensation and Qualified Plans,
investing through the ICMA Retirement Trust.
00- 0098
(b) Pursuant to the By- La -,vs, the Group `Irusr is adopted as a part of each Qualified Plan that
invests herein through the 1CMA Retirement Trust.
(c) In accord with the By- Laws, that part of the Group ",`rust's corpus or incontc which equitably
belongs to any Deferred Compensation and Qualified Plan may nor be used for or diverted
to any purposes other than for the exclusive benefit of the Plan's etnployces or their benefici-
aries who are entitled to benefits under such Plan.
(d) [n accord with the By-Laws, no Deferred Compensation Plan or Qualified Plan may assign
any or part of its equity or interest in the Group crust, and any purported assignment of such
equity or interest shall be void.
3. Govtrnirig Law. Except as otherwise required by federal, state or local law, this Declaration of Trust
(including the ICN'LA Declaration to the extent incorporated herein) and the Croup Trust created hereun-
der shall be construed and determined in accordance with applicable laws of the State of New Hampshire.
Judicial Proceedings. The Trustee may at any time initiate an action or proceeding in the appropriate
state or federal courts within or outside the stare of New Hampshirc for the settlement of its accounts or
for the determination of any question of construction which may arise or for instructions.
IN WITNESS WHEREOF, the 7rusrec has executed this Declaration of'l *rust as of the day and year first above
Written.
VANTAGETRUST COMPANY
Name: Paul F. Galla�,,her
t... c: Assistant Secretary
. its:. ,
000099
ADMINISTRATIVE SERVICES AGREEMENT
Type: 401
Account Number: 8573
0001 -00
Plan # 8573
ADMINISTRATIVE SERVICES AGREEMENT
This Agreement, made as of the day of , 2003 (herein referred to as
the "Inception Date "), between The International City Management Association Retirement
Corporation ( "RC "), a nonprofit corporation organized and existing under the laws of the
State of Delaware; and the City of Moorpark ( "Employer") a City organized and existing
under the laws of the State of California with an office at 1205 East F Street, Oakdale,
California 95361.
RECITALS
Employer acts as a public plan sponsor for a retirement plan ( "Plan ") with responsibility to
obtain investment alternatives and services for employees participating in that Plan;
The VantageTrust (the "Trust ") is a common law trust governed by an elected Board of
Trustees for the commingled investment of retirement funds held by state and local
governmental units for their employees;
RC acts as investment adviser to the Trust; RC has designed, and the Trust offers, a series
of separate funds (the "Funds ") for the investment of plan assets as referenced in the
Trust's principal disclosure document, "Making Sound Investment Decisions: A Retirement
Investment Guide." The Funds are available only to public employers and only through
the Trust and RC.
In addition to serving as investment adviser to the Trust, RC provides a complete offering
of services to public employers for the operation of employee retirement plans including,
but not limited to, communications concerning investment alternatives, account
maintenance, account record - keeping, investment and tax reporting, form processing,
benefit disbursement and asset management.
AGREEMENTS
Appointment of RC
Employer hereby designates RC as Administrator of the Plan to perform all non -
discretionary functions necessary for the administration of the Plan with respect to assets
in the Plan deposited with the Trust. The functions to be performed by RC include:
(a) allocation in accordance with participant direction of individual accounts to
investment Funds offered by the Trust;
(b) maintenance of individual accounts for participants reflecting amounts deferred,
income, gain, or loss credited, and amounts disbursed as benefits;
(c) provision of periodic reports to the Employer and participants of the status of Plan
investments and individual accounts;
-2-
000101
Plan # 8573
(d) communication to participants of information regarding their rights and elections
under the Plan; and
(e) disbursement of benefits as agent for the Employer in accordance with terms of the
Plan.
2. Adoption of Trust
Employer has adopted the Declaration of Trust of VantageTrust and agrees to the
commingled investment of assets of the Plan within the Trust. Employer agrees that
operation of the Plan and investment, management and disbursement of amounts
deposited in the Trust shall be subject to the Declaration of Trust, as it may be amended
from time to time and shall also be subject to terms and conditions set forth in disclosure
documents (such as the Retirement Investment Guide or Employer Bulletins) as those
terms and conditions may be adjusted from time to time. It is understood that the term
"Employer Trust" as it is used in the Declaration of Trust shall mean this Administrative
Services Agreement.
3. Employer Duty to Furnish Information
Employer agrees to furnish to RC on a timely basis such information as is necessary for
RC to carry out its responsibilities as Administrator of the Plan, including information
needed to allocate individual participant accounts to Funds in the Trust, and information as
to the employment status of participants, and participant ages, addresses and other
identifying information (including tax identification numbers). RC shall be entitled to rely
upon the accuracy of any information that is furnished to it by a responsible official of the
Employer or any information relating to an individual participant or beneficiary that is
furnished by such participant or beneficiary, and RC shall not be responsible for any error
arising from its reliance on such information. RC will provide account information in
reports, statements or accountings.
4. Certain Representations, Warranties, and Covenants
RC represents and warrants to Employer that:
(a) RC is a non - profit corporation with full power and authority to enter into this
Agreement and to perform its obligations under this Agreement. The ability of RC to
serve as investment adviser to the Trust is dependent upon the continued
willingness of the Trust for RC to serve in that capacity.
(b) RC is an investment adviser registered as such with the Securities and Exchange
Commission under the Investment Advisers Act of 1940, as amended. ICMA -RC
Services, Inc. (a wholly owned subsidiary of RC) is registered as a broker - dealer
with the Securities and Exchange Commission (SEC) and is a member in good
-3-
000102
Plan # 8573
standing of the National Association of Securities Dealers, Inc.
RC covenants with employer that:
(c) RC shall maintain and administer the Plan in compliance with the requirements
for plans which satisfy the qualification requirements of Section 401 of the
Internal Revenue Code; provided, however, RC shall not be responsible for the
qualified status of the Plan in the event that the Employer directs RC to
administer the Plan or disburse assets in a manner inconsistent with the
requirements of Section 401 or otherwise causes the Plan not to be carried out
in accordance with its terms; provided, further, that if the plan document used by
the Employer contains terms that differ from the terms of RC's standardized plan
document, RC shall not be responsible for the qualified status of the Plan to the
extent affected by the differing terms in the Employer's plan document.
Employer represents and warrants to RC that:
(d) Employer is organized in the form and manner recited in the opening paragraph of
this Agreement with full power and authority to enter into and perform its obligations
under this Agreement and to act for the Plan and participants in the manner
contemplated in this Agreement. Execution, delivery, and performance of this
Agreement will not conflict with any law, rule, regulation or contract by which the
Employer is bound or to which it is a party.
5. Participation in Certain Proceedings
The Employer hereby authorizes RC to act as agent, to appear on its behalf, and to join the
Employer as a necessary party in all legal proceedings involving the garnishment of
benefits or the transfer of benefits pursuant to the divorce or separation of participants in
the Employer Plan. Unless Employer notifies RC otherwise, Employer consents to the
disbursement by RC of benefits that have been garnished or transferred to a former
spouse, spouse or child pursuant to a domestic relations order.
6. Compensation and Payment
(a) Plan Administration Fee. The amount to be paid for plan administration services
under this Agreement shall be 0.55% per annum of the amount of Plan assets
invested in the Trust. Such fee shall be computed based on average daily net Plan
assets in the Trust.
(b) Account Maintenance Fee. There shall be an annual account maintenance fee of
$25.00. The account maintenance fee is payable in full on January 1 st of each year
on each account in existence on that date. For accounts established AFTER
January 1 st, the fee is payable on the first day of the calendar quarter following
establishment and is prorated by reference to the number of calendar quarters
0001')3
Plan # 8573
remaining on the day of payment. See Appendix A for EZLink terms and conditions.
(c) Compensation for Management Services to the Trust and Advisory and other
Services to the Vantagepoint Funds. Employer acknowledges that in addition to
amounts payable under this Agreement, RC receives fees from the Trust for
investment management services furnished to the Trust. Employer further
acknowledges that certain wholly -owned subsidiaries of RC receive compensation
for advisory and other services furnished to the Vantagepoint Funds, which serve as
the underlying portfolios of a number of Funds offered through the Trust. The fees
referred to in this subsection are disclosed in the Retirement Investment Guide.
These fees are not assessed against assets invested in the Trust's Mutual Fund
Series.
(d) Mutual Fund Services Fee. There is an annual charge of 0.15% assessed against
average daily net Plan assets invested in the Trust's Mutual Fund Series.
(e) Payment Procedures. All payments to RC pursuant to this Section 6 shall be paid
out of the Plan assets held by the Trust and shall be paid by the Trust. The amount
of Plan assets held in the Trust shall be adjusted by the Trust as required to reflect
such payments.
7. Custody
Employer understands that amounts invested in the Trust are to be remitted directly to the
Trust in accordance with instructions provided to Employer by RC and are not to be
remitted to RC. In the event that any check or wire transfer is incorrectly labeled or
transferred to RC, RC will return it to Employer with proper instructions.
8. Responsibility
RC shall not be responsible for any acts or omissions of any person other than RC in
connection with the administration or operation of the Plan.
9. Term
This Agreement may be terminated without penalty by either party on sixty days advance
notice in writing to the other.
10. Amendments and Adiustments
(a) This Agreement may not be amended except by written instrument signed by the
parties.
(b) The parties agree that an adjustment to compensation or administrative and
operational services under this Agreement may only be implemented by RC through
Wiz
000104
Plan # 8573
a proposal to the Employer via correspondence or the Employer Bulletin. The
Employer will be given at least 60 days to review the proposal before the effective
date of the adjustment. Such adjustment shall become effective unless, within the
60 day period before the effective date, the Employer notifies RC in writing that it
does not accept such adjustment, in which event the parties will negotiate with
respect to the adjustment.
(c) No failure to exercise and no delay in exercising any right, remedy, power or
privilege hereunder shall operate as a waiver of such right, remedy, power or
privilege.
11. Notices
All notices required to be delivered under Section 10 of this Agreement shall be delivered
personally or by registered or certified mail, postage prepaid, return receipt requested, to (i)
Legal Department, ICMA Retirement Corporation, 777 North Capitol Street, N.E., Suite
600, Washington, D.C, 20002 -4240; (ii) Employer at the office set forth in the first
paragraph hereof, or to any other address designated by the party to receive the same by
written notice similarly given.
12. Complete Agreement
This Agreement shall constitute the sole agreement between RC and Employer relating to
the object of this Agreement and correctly sets forth the complete rights, duties and
obligations of each party to the other as of its date. Any prior agreements, promises,
negotiations or representations, verbal or otherwise, not expressly set forth in this
Agreement are of no force and effect.
13. Governing Law
This agreement shall be governed by and construed in accordance with the laws of the
State of California, applicable to contracts made in that jurisdiction without reference to its
conflicts of laws provisions.
000105
Plan # 8573
In Witness Whereof, the parties hereto have executed this Agreement as of the Inception
Date first above written.
CITY OF MOORPARK
by:
Signature /Date
Name and Title (Please Print)
INTERNATIONAL CITY MANAGEMENT
ASSOCIATION RETIREMENT
CORPORATION
by:
7-
Paul Gallagher
Corporate Secretary
000106
Plan # 8573
Appendix 1
I. The annual Account Maintenance Fee for individual whose Employers do not use
EZLink for enrollment and contribution processing shall be $36.00.
II. The annual Account Maintenance Fee for individual whose Employers are using
EZLink for enrollment and contribution processing, where average participant account
balance is less than $25,000 shall be $25.00. This fee applies to this Plan.
III. The annual Account Maintenance Fee for individuals will be waived ($0.00) for
Employers who use EZLink for enrollment and contribution processing, where the
average participant account balance is equal to or greater than $25,000.
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